Divorce can be as devastating financially as it is emotionally. From alimony payments and legal fees to asset division and potential tax penalties, the average cost in the United States often runs in the $20,000 range. Though these expenses are unlikely to deter couples in need of a separation, the lawyers at Weingast Law in Hartford, CT, recommend preparing yourself for the road ahead.

A Lawyer’s Guide to Dealing With the Financial Aspects of Divorce

Separate Everything

Once you and your spouse have decided to divorce, it’s important to cancel your joint bank accounts. Cut up and cancel all your credit cards, and request new ones in your name. Close out your unused credit accounts, and contact your creditors regarding your change in marital status. After your assets have been legally divided and your divorce has been finalized, change the names on car titles, stocks and bonds, and house deeds. Don’t forget to update your will and estate plan. Change beneficiaries on savings accounts, life insurance policies, retirement plans, and investments.

Make a Post-Divorce Budget

Creating a post-divorce budget is essential. Keep in mind your basic living expenses will nearly double. In addition to alimony and child support payments, you and your ex-spouse must now account for separate mortgage or rent payments, utility bills, health insurance plans, and added living expenses, such as groceries and cell phone plans.

With your post-divorce budget, you can determine whether you’ll have excess funds or need to cut back on spending, find additional income sources, or dip into your investments. Discuss your budget with your divorce lawyer for additional insights into potential expenses, income opportunities, and investment strategies. 

If you require the aid of a divorce law attorney, Weingast Law is available to help. Serving Hartford, CT, clients for over 35 years, lawyer Jeremy Weingast focuses on a variety of practice areas, including divorce law, personal injury, and criminal law cases. Visit the firm online or call (860) 233-1440 to schedule an appointment.